A Special Look into the Mining Companies in Borsa Istanbul with MCDA Methods

Proceedings of The 6th International Conference on Management, Economics and Finance

Year: 2023

DOI: https://www.doi.org/10.33422/6th.icmef.2023.03.004


A Special Look into the Mining Companies in Borsa Istanbul with MCDA Methods

Orhan Emre ELMA




Organizational performance is crucial in determining the position of a company within its industry. Especially with financial performance, the positive and negative aspects of a firm can be determined with comparisons to similar companies, in an effective and practical fashion. In financial performance analyses where multiple criteria need to be scrutinized, multi-criteria decision analyses (MCDA) have used extensively in recent years. Due to its geological infrastructure, the mining sector has a strategic importance in Türkiye. To that end, mining companies traded in Borsa Istanbul were examined in this study in terms of financial performance and all 5 companies operating in the aforementioned sector were ranked according to their performance scores. 6 accounting and valuation-based criteria were used along with standard deviation weighting technique, and 7 quarterly periods between 2021 and 2022 were investigated in this research. Interestingly, Gray Relational Analysis (GRA) and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) methods generated similar results when overall industry is analyzed, in terms of performance scores. Thus, GRA and TOPSIS methods are suggested to financial decision makers as a decision support system in order for them to take strategical decisions in capital markets where uncertainty is severely experienced.

keywords: Capital Markets, Financial Performance, MCDA